The international behavior of prices of the barrel of oil, soybeans, corn, wheat, as well as the high cost of container transport, are affecting the products in the Dominican Republic.
The change in the productive structure of the country, which went from the production of agricultural goods to tourism and services, is affecting the fact that today it has the level of inflation higher than other nations in the region.
This was explained by Paulo de León, executive director of Central American Business Intelligence (CABI), a company that analyzes the price of raw materials, who confirmed that, of the 11 nations that they monitor, it is in the country where the greatest inflationbetween 8% and 10% in recent months.
De León declared that the Dominican economy is dependent on the international circle in matters of prices because it matters more and more foodsso it absorbs faster and more strongly the increases in costs that occur abroad.
“It has found (the national economy) a reason for being: tourism and services and, therefore, it has stopped producing. That is why today it no longer exports coffee, but imports it. The Dominican (economy) is more dependent on imports than other countries,” he noted.
He said that the country has been rotating from agriculture to services and tourism – which is a good bet because they are better quality jobs – but, when there is a crisis like COVID-19, when tourism falls and hits the productive part, then the impact is greater.
The CABI executive warned that the inflationary process will bring an increase in poverty, migration, violence and theft in the region. However, he proposed to the governments, in order to face this situation, to lower taxes on foods.
“The government that sacrifices itself. I like that better (lowering taxes on foods) than to give subsidies, lower tariffs. And in those places of extreme poverty, bring support with food”, he suggested during the webinar “The impacts of the current inflationary scenario in the region”.
Foods
The Minister of Agriculture, Limber Cruz, indicated yesterday that in the country there is an abundance of foods, and that “it is worse to have money and not have anything to buy. Here there are a lot of eggs, a lot of chickens, a lot of bananas, a lot of rice; the family basket in the Dominican Republic is completely full,” she expressed.
When reviewing the prices of some products, DailyFree was able to observe that a pound of super select rice cost RD$31.42 in February 2021, and an average of RD$33.36 a pound a year later, for an increase of 6.17%. Select rice used to be sold in supermarkets at RD$29.27 per pound, today it is sold at RD$31.06, for a difference of 6.12%.
According to data published on the website of the Department of agriculturea pound of red beans was sold in supermarkets at RD$79.93 in February 2021 and in February 2022 it cost RD$84.92, for 6.24% more than last year.
The Persian lemon increased by 34.34%, the yellow passion fruit cost RD$141.54 in February 2021 and went to RD$187.51 in February 2022, for an increase of 32.47% in one year, are some examples. he
The Cibao Home Builders and Promoters Association (Aprocovici) expressed concern about the rise in the price of cement in the last two years. Landy Colón, president of the entity, assures that in the last 24 months this material has increased by 35%. He said that by March 2020, the average cost of a cement bag in hardware stores was RD$315, and by December 2021 its price was around RD$425. He considers the increase unjustifiable because it is a locally produced material. In addition, fewer external factors intervene in the price of cement, since its distribution cycle is shorter, leaving aside freight and other aspects that affect the cost of other materials.
